Endemol, the group behind the Big Brother TV phenomenon, could be up for sale as its owner, Telefonica, looks to focus on its telecoms operations.
Rumours of an imminent sale of Endemol surfaced after the Spanish parent company appointed a Spaniard, Joaquim Agut, as its new chief executive.
Bankers said that a sale in the short term is unlikely but a move is expected in the medium term.
Sources said that a disposal of Netherlands-based Endemol would make perfect sense for its owner if a recovery in the media sector gathers pace.
One investment banker close to Telefonica said it would not be surprising if Telefonica were to sell Endemol at some stage in the future, especially if the media sector continues to recover.
"It's not a natural thing for them to keep, but I don't see them selling it any time soon," the banker said.
Endemol's co-founder and supervisory board member Joop van den Ende said on Dutch TV that he thought Telefonica should sell the company.
However, the high price that Telefonica paid for Endemol - ?5.6bn in 2000 - plus the downturn in the media sector, will make a sale difficult.
Analysts estimate that Endemol is worth just ?1.5bn to ?2.5bn in the present climate.
Telefonica's media partner Bertelsmann has been mentioned as a possible buyer for the group.
Earlier this year, RTL Group - part of Bertelsmann - denied persistent rumours that it was thinking of buying Endemol and merging it with its FremantleMedia production unit.
Thomas Notermans, the spokesperson for Endemol's board, said that Endemol's management was told about the new appointment only two hours before Telefonica told the market. "After asking why, Telefonica said: 'we just think that we need a Spaniard at the top'," said Notermans.
Aat Schouwenaar, previously chairman and chief executive of Endemol, will continue to be Endemol's chairman.
An investment banker who has worked with Telefonica in the past thought that the company probably appointed a Spaniard as chief executive to exert greater management control on Endemol.
"You don't appoint a new CEO if you're going to sell after three months," the banker said.
A company spokesperson denied that Telefonica has any plans to sell Endemol.
.jpg)
.jpg)